April 17, 2021

Boat/Personal Watercraft (PWC) Insurance FAQ's

Q: What is the difference between boat and yacht insurance?
A: If your vessel is up to 26 feet long, then it should be insured as a "boat". If it is beyond 26 feet long, it is considered a "yacht" and requires broader and more specialized coverage..

Q: Is my boat covered under my homeowner's policy?
A: A separate policy should be purchased rather than adding an endorsement to your homeowner's insurance policy. It often limits the risks associated with marine activities such as salvage of the vessel, the removal of wreckage, pollution, or environmental damage.

Q: Should I cover for wreckage?
A: You should have a separate warranty for an amount equal to cover the rescue work. This covers you for the loss of your boat as well a for expenses attributable to the removal of the wreckage.

Q: How much should I insure my boat for?
A: You should insure your boat for the amount it would cost you to replace it. This is called "Agreed Value" coverage. In the event of a total loss, it will pay the full insured amount and not take into account depreciation. Beware of "Actual Cash Value" (ACV) coverage because the replacement cost will be the value less depreciation. Note: Agreed Value coverage is not always available.

Q: What is Personal Liability insurance?
A: Personal liability insurance will pay for the medical bills for a person injured while riding in your boat whether it is your fault or the fault of someone driving your boat.

Q: What is Boat Damage insurance?
A: Boat damage insurance will cover you to replace your boat or repair it, depending on the severity of the damage and the coverage on your policy.

Q: What is Optional Coverages for Personal Property?
A: Covers personal property such as fishing equipment, life vests, ropes, bumpers etc.

Q: What is Comprehensive coverage?
A: Comprehensive coverage will protect yourself from loss other than collision, such as theft, vandalism, storms, fire, and falling objects.

Q: What is coverage for uninsured or underinsured boaters?
A: Uninsured coverage protects you and your boat in case you get into an accident with an uninsured boater. If the boater is underinsured and the repair cost is more than the coverage the other person has, this will pay any cost coverage up to your policy limits.

Q: What is Medical Payment coverage?
A: Medical payment coverage covers medical bills paid for you and your passengers even if you are at fault.

Q: Should I purchase on-water towing coverage?
A: On-water towing will reimburse you for costs incurred from a mechanical breakdown or running out of gas.

Q: Should I consider trailer coverage?
A: Yes, what would you do with your boat if you did not have a trailer?